Rating domain portfolios
Thematic area Big Data
Many existing and emerging domains are bought by companies as capital investments. The problem here is the mostly unclear market value, because although bids are received here and there by the owners of the domains, the market is strongly distorted by supply and demand and can be strongly influenced by sudden events, such as newly released domain extensions or the sudden success of a previously unknown company. If one considers the fact that domains like www.hotels.com are sold for 11 million US dollars, one can see the enormous potential resulting from an adequate domain evaluation. Supposedly unattractive numbers in domains like www.2014.de can rapidly increase in value due to the winning of the World Cup by the German national team. This exact evaluation improves the marketing of domains as well as minimizes possible investment losses.
The aim of the project is to develop a strategy with an associated model for domain evaluation. An adequate valuation model should minimize losses on the part of the investors. Domains whose demand is unlikely in the foreseeable future are to be marked accordingly throughout the portfolio and recommended for release. In addition, domains whose demand is probable will have a positive influence on the market value of the portfolio.